Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Kawasan Industri Jababeka (KIJA IJ) - Proxy for Shifting Supply Chains

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

Although there would be no principal loss from Jababeka's bond exchange offer, the new bonds would have a significantly longer maturity (2027 vs. 2023), with only a slightly higher coupon. The new notes would likely also have limited liquidity. The KIJAIJ 6.5 23 is trading at c. 50, yielding c. 125%, having dropped from 55 before the announcement of the exchange offer. We estimate the yield of the notes following participation in the exchange offer at 54%, given the current price of the KIJAIJ 6.5 23. If the exchange offer is not completed, Jababeka looks set to default on the KIJAIJ 6.5 23. The company had only USD 81 mn of cash in July 2023, while generating minimal FCF (USD 6 mn in LTM to June 2022). A USD 100 mn term loan from Bank Mandiri would also not be available to be draw down. We recommend that noteholders participate in the exchange offer and give consent to eliminate substantially all restrictive covenants.

  Although there would be no principal loss from Jababeka's bond exchange offer, the new bonds would have a significantly longer maturity (2027 vs. 2023), with only a slightly higher coupon. The new notes would likely also have limited liquidity. The KIJAIJ 6.5 23 is trading at c. 50, yielding c. 125%, having dropped from 55 before the announcement of the exchange offer. We estimate the yield of the notes following participation in the exchange offer at 54%, given the current price of the KIJAIJ 6.5 23.   If the exchange offer is not completed, Jababeka looks set to default on the KIJAIJ 6.5 23. The company had only USD 81 mn of cash in July 2023, while generating minimal FCF (USD 6 mn in LTM to June 2022). A USD 100 mn term loan from Bank Mandiri would also not be available to be draw down.   We recommend that noteholders participate in the exchange offer and give consent to eliminate substantially all restrictive covenants. 

Jababeka - Event Flash - Exchange Offer For USD 300 Mn 6.5% Notes Due 2023 - Lucror Analytics